Early-Time Photometry and Spectroscopy of the Fast Evolving SN 2006AJ Associated with GRB 060218

We present early photometric and spectroscopic data on the afterglow of GRB 060218 and report the evolution of the underlying supernova 2006aj. Our data span a time-range of 4 days to 22 days after the GRB and clearly establish that SN 2006aj is a fast-evolving broad-lined Type Ic SN with an extremely short rise-time (~ 10 days) and a large optical luminosity (M_V = -18.7 mag). The SN properties are deduced well since the GRB afterglow does not contribute a significant amount to the total light output. The spectra show broad lines indicative of large expansion velocities, but are better matched by those of SN 2002ap and SN 1997ef (that are not associated with a GRB) than those of the proto-typical GRB-related SN 1998bw. We refine the redshift estimate to z = 0.0335 +/- 0.00007. The host-galaxy is a low-metallicity dwarf galaxy (with M_V \~ -16.0 mag), similar to host-galaxies of other GRB-associated SNe.